Question: Inventory shrinkage is a measurement that represents the difference between the recorded inventory and the actual inventory. According to Kenton (2020), the impact of shrinkage

Inventory shrinkage is a measurement that represents the difference between the recorded inventory and the actual inventory. According to Kenton (2020), the impact of shrinkage is a loss of profits to the company. This is especially true in retail environments, where businesses operate on low margins and high volumes. What factors contribute to (or cause) inventory shrinkage?

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